Texas Manufacturing Grows Modestly Despite Outlook Slump: Dallas Fed

Production stayed in growth territory last month even as orders shrank, costs rose, and confidence sank to a five-year low.

Employees work on a chassis at a factory in Riverside, Calif., on Sept. 23, 2005. David McNew/Getty Images

Manufacturing activity in Texas continued to grow in April, though modestly, even as business sentiment deteriorated to a five-year low, the Federal Reserve Bank of Dallas reported on April 28.

The Dallas Fed’s production index—a key gauge of factory output—registered 5.1, remaining in positive territory for a third consecutive month and signaling slight but steady growth. However, the general business activity index plunged to minus 35.8, the weakest reading since May 2020, reflecting deepening anxiety among manufacturers over tariffs and broader economic uncertainty.